New South Wales Consolidated Acts

CO-OPERATIVE HOUSING AND STARR-BOWKETT SOCIETIES ACT 1998 - SECT 49

49 Formation of co-operative housing and Starr-Bowkett societies

(1) A body proposed to be a co-operative housing society or a Starr-Bowkett society may be formed by any 7 or more adults.

(2) The proposed society may be formed only if there has been a meeting for the purpose of forming the society at which there were present 7 or more adults.

(3) At the formation meeting, there must be presented:

(a) a written statement showing:

(i) the objects of the society, and

(ii) whether the society is proposed to operate as a co-operative housing society or a Starr-Bowkett society, and

(iii) the reasons for believing:

(A) that an application for registration of the society should be granted, and

(B) that, if registered, the society will be able to carry out its objects successfully, and

(b) a copy of the proposed rules of the society.

(4) If, at the formation meeting or any subsequent or adjourned meeting, 7 or more adults, after considering the statement and the rules, approve the rules (with or without amendment), and sign an application for membership and shares, they may proceed to elect the first directors of the society under the rules as so approved.

(5) An application for shares in a proposed society, made before the registration of the society, may not be withdrawn, and a person who makes such an application is, on the registration of the society, liable to pay the society:

(a) the value of the shares for which the person applied, or

(b) the value of the minimum number of shares for which a member is entitled to subscribe,

whichever is the greater.

(6) The expenses of, and incidental to, the formation of the society may be paid out of the capital or income of the society.

(7) A person must not, before a society is registered:

(a) make an offer or invitation to the public in order to raise funds for the proposed society, whether by allotting a share or interest in the proposed society or accepting amounts on loan, or

(b) take an amount in consideration of the allotment of a share or interest in, or providing financial accommodation by, the proposed society.

Maximum penalty (subsection (7)): 50 penalty units or imprisonment for 12 months, or both.